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Indiana governor signs amended 'religious freedom' law

INDIANAPOLIS — Indiana Republican legislative leaders, under growing pressure from inside and outside the state, said Thursday that lawmakers had reached agreement to alter Indiana's controversial "religious freedom" law to ensure it does not discriminate against gays and lesbians.

INDIANAPOLIS — Indiana Gov. Mike Pence on Thursday signed into law revisions in the state's divisive Religious Freedom Restoration Act aimed at removing fears that it would allow businesses to discriminate against gays and lesbians.

The Indiana House voted 66-30 and the Senate voted 34-16 to OK revisions to the "religious freedom" law.

Earlier Thursday, business, civic and sports leaders who have strongly called for a fix to the legislation flanked Indiana Republicans as they announced sexual orientation and gender identity will be explicitly protected in the new law.

The business community and civic leaders throughout the state had overwhelmingly opposed the law, which they feared would have allowed discrimination against the lesbian, gay, bisexual and transgender community. But several embraced the fix that legislative leaders unveiled Thursday morning.

Speaking at the press conference were Allison Melangton, who headed planning for the 2012 Super Bowl in Indianapolis; Jim Morris, vice chairman of the Pacers; former Indianapolis Mayor Bart Peterson; and Chief Executive Scott McCorkle of Salesforce Marketing Cloud.

However, Angie's List (ANGI) rejected the compromise, becoming the first major Indiana company to do so.

"Our position is that this 'fix' is insufficient," said Bill Oesterle, CEO of Angie's List."There was no repeal of RFRA and no end to discrimination of homosexuals in Indiana."

The company, with headquarters in Indianapolis, put a planned expansion of its campus on hold after the original law was passed.

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Indiana's Religious Freedom Restoration Act, which takes effect July 1, would prohibit laws that "substantially burden" a person's freedom of religion unless the government can prove a compelling interest in imposing that burden.
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Senate President Pro Tem David Long, in unveiling the revised law, said it will "unequivocably state that Indiana's (religious freedom) law does not and will not be able to discriminate against anyone, anywhere at any time."

The amendment means that for the first time an Indiana law will include the language "sexual orientation" and "gender identity."

The revised law potentially could quell concerns that have made Indiana the focus of national derision for one very intense week.

"It was never intended to discriminate against anyone," Long said. "That perception led to the national protests we've seen."

Former Indianapolis mayor and Democrat Bart Peterson said the words "gender identity" and "sexual orientation" will appear in state law in context of anti-discrimination for first time.

"The healing needs to begin right now," said Peterson, an Eli Lilly and Co. executive.

Long and Bosma spent 90 minutes meeting late Wednesday evening discussing the deal with top staff and Gov. Mike Pence's chief of staff, Jim Atterholt.

Atterholt, a former state lawmaker himself, did not say whether Pence would sign the compromise measure. He said Pence still needed to review the plan.

The deal was hammered out in private between Bosma, Long, Atterholt and a small handful of business leaders, including Republican powerbroker and Indianapolis Motor Speedway CEO Mark Miles, throughout the day Tuesday and Wednesday. However, early discussions about the "fix" began Friday, one day after Pence signed the law in a private ceremony.

The measure could put to rest some of the harsher criticisms that Indiana Republicans have suffered through in the past week. But it is unlikely to make either liberal or conservative activists happy.

The measure also has the potential to quell some of the damage Pence has endured in the past week, punctuated by David Letterman's recitation of an entire Top 10 list specifically mocking the first-term governor.

Pence received a copy of proposed language Wednesday morning. It was then the subject of negotiations among the Republican leaders, lawmakers and business leaders in private meetings throughout the day.

The flurry of activity culminated in a second round of private caucus meetings for Republican House and Senate members at about 5 p.m. ET, where consensus on the new "clarifying" language was reached.

The compromise legislation specifies that the new religious freedom law cannot be used as a legal defense to discriminate against patrons based on their sexual orientation or gender identity.

It goes much further than a "preamble" that was proposed earlier in the week, and, if it stands, would be the first time any protections against discrimination have been extended to gays and lesbians in state law. But it doesn't go as far as establishing gays and lesbians as a protected class of citizens statewide or repealing the law outright, both things that Republican leaders have said they could not support.

A draft circulated early Wednesday said that the new "religious freedom" law does not authorize a provider — including businesses or individuals — to refuse to offer or provide its services, facilities, goods or public accommodation to any member of the public based on sexual orientation or gender identity, in addition to race, color, religion, ancestry, age, national origin, disability, sex or military service.

It exempts churches or other nonprofit religious organizations — including affiliated schools — from the definition of "provider."

Later Wednesday, additional language was added to include protections in housing and employment.

The clarifying language is likely to rile socially conservative advocacy groups, which hold significant sway among Republicans at the Statehouse and pushed hard for the religious freedom law after a failed legislative effort last year to enshrine a same-sex marriage ban in the state constitution.

Leaders of three of those groups — the American Family Association of Indiana, the Indiana Family Institute, and Advance America — declined comment or did not return messages from The Star Wednesday.

But in an email update to supporters from the AFA's Micah Clark, he urged them to contact their state senators and to pray for legislators.

"At this very moment, the Indiana Senate is considering 'water-down' language to the recently passed and pro-religious-liberty bill, Religious Freedom Restoration Act," the email says. "Homosexual activists are demanding Christian business owners in Indiana be forced to compromise their faith."

At the same time, opponents of the law argued the clarification being discussed does not go far enough.

Katie Blair, campaign manager for Freedom Indiana, said in a statement Wednesday that the draft bill should include a guarantee that the RFRA "cannot be used to undermine any nondiscrimination protections."

The prospect of the clarifying language also failed to prevent the Christian Church (Disciples of Christ) from following through Wednesday on its threat of relocating its 6,000-person 2017 convention from Indianapolis because of the new law.

Threats from business leaders and financial institutions have caused the most worry at the Statehouse, ultimately spurring Republican leaders to reconsider a measure they never believed authorized discrimination.

Earlier in the day Wednesday, the California Endowment, one of the largest health foundations in the nation, sent letters to three Indiana companies — Eli Lilly (LLY), Anthem (ANTM) and Berry Plastics Group (BERY) — warning of possible sales of their stock if the new Indiana religious freedom law stays on the books unaltered.

Statehouse Democrats continued to call for a repeal of the law and full statewide protections against discrimination of gays and lesbians. It was not clear Wednesday night if Democrats, who are vastly outnumbered in the Statehouse, would go along with the compromise or if their votes were needed.

Senate Enrolled Act 101, signed into law by Pence during a private ceremony Thursday, prohibits state or local governments from substantially burdening a person's ability to exercise their religion — unless the government can show that it has a compelling interest and that the action is the least-restrictive means of achieving it. It takes effect July 1.

Although the original law does not mention sexual orientation, opponents feared it could allow business owners to deny services to gays and lesbians for religious reasons.

The law has garnered a national barrage of criticism from top business executives, celebrities and civil rights groups who fear the law could allow discrimination and damage the state's reputation.

Conventions have canceled or threatened to move events that bring millions of dollars into the state. Prominent Indiana business executives have opposed the law, with some companies halting expansion plans and others canceling travel to the state.

The NCAA, which is holding the men's Final Four in Indianapolis this week, also has expressed concerns about the law.

In response, Pence stood by the law and blamed the criticism on misconceptions promulgated by the media.